Corestate Capital Holding Sa · XETR:CCAP
Corestate Capital Holding Sa — Non-Deal Roadshow (June 2021)
26 slides from Corestate Capital Holding Sa's roadshow presentation, June 2021
Slide 1: Roadshow Presentation May / June 2021
24.7bn RE Roadshow Presentation May / June 2021 Lars Schnidrig, CFO | Dr. Kai Klinger, CMO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that are Glossary subject to various risks and uncertainties. Such statements are € = Euro; based on a number of assumptions, estimates, projections or $ = (US)Dollar; plans that are inherently subject to significant risks, as well as
Slide 3: A Fully Integrated and Specialized Real Estate Investment Manager
A Fully Integrated and Specialized Real Estate Investment Manager € c28bn >40% * Assets under EBITDA Management Margin ~800 FTEs | 45 Offices | 9 Countries BB (negative) c € 6bn € c1.3bn Corporate Credit Deal Pipeline in Fund Volume Rating RE Debt & Equity in Real Estate Mezzanine * mid-point financ
Slide 4: Strong Support from Macro Environment and Mega Trends
Strong Support from Macro Environment and Mega Trends Real Estate Equity Real Estate Debt ▪ Increasing investment pressure (esp. on pension ▪ Constraints in bank credits on higher risk Key Market Driver schemes and insurers) driven by interest rate profiles (regulation even fostered by corona) envir
Slide 5: Acquisition of Aggregate Financial Services (AFS) as Core Component of Private Debt Strategy
Acquisition of Aggregate Financial Services (AFS) as Core Component of Private Debt Strategy Creating a Leading Real Estate Financing Platform AFS with ▪ Financing advice with focus on small/mid size tickets perfectly ▪ Structuring of private debt financings, mainly for real estate complementary ▪ P
Slide 6: Enhanced Real Estate Debt Offering for our Clients
Enhanced Real Estate Debt Offering for our Clients to go with our Diversified Product Line-up Equity Product Range Debt Product Range (*after Closing of AFS Acquisition) Products \ Debt Advisory Residential City Quarters Office Logistics Micro Living *Senior *Whole Mezzanine and Loan Loan Structurin
Slide 7: Management Board Completed and Aligned
Management Board Completed and Aligned Members of the Management Board René Parmantier (CEO) Business Development & Corporate Strategy, M&A, Corporate Communications, Equity Raising, Sebastian Ernst (Chief Debt Investment Officer) Private Debt & DCM Nils Hübener (CIO) Investment & Asset Management D
Slide 8: Highlights of Q1-2021
Highlights of Q1-2021 COVID-19 Third Wave Delays the Recovery of the RE Investment Market ▪ Pandemic-fostered seasonality impacts some pockets of operations in Q1 ▪ Well-filled project pipeline with clear path to a prosperous further course of the year ▪ HFS with promising rate of new business ▪ Rev
Slide 9: Corestate's Assets under Management on Record High
Corestate’s Assets under Management on Record High Assets under Management Sourcing Pipeline ▪ c +1% net organic growth in RE AuMs after ▪ RE Debt mezzanine pipeline c € 500m revaluation effects (project volume > € 2bn) ▪ Planned decrease in non-RE AuMs (c € -100m) ▪ RE Equity sourcing pipeline in a
Slide 10: RE Debt – Stable Mezzanine Fund Volume and Unchanged Focus on Top Cities
RE Debt – Stable Mezzanine Fund Volume and Unchanged Focus on Top Cities with Increasing Project Sizes Uses of Mezzanine Funds at the End of Q1-2021 ▪ Total committed fund volume: c € 1.3bn ▪ # of financed projects: 48 ▪ Ø size of mezzanine financing: c € 27m ▪ c 70% in residential/city quarter proj
Slide 11: RE Debt – Successful Risk-Steering in Challenging Market
RE Debt – Successful Risk-Steering in Challenging Market Active Risk Management Fund Exposure to Top 5 Borrowers ▪ Further improvement of investment focus to Client Share Project Profile large cities (Germany’s Top 7) A c 18% Purely Resi & City Quarters in Top 7 ▪ 28 different borrowers B c 18% Pure
Slide 12: Income Lines Temporarily Impacted by Pandemic's Third Wave
Income Lines Temporarily Impacted by Pandemic’s Third Wave Revenue Split-up for Q1-2021 in m€ (Q1-2020) RE Equity ▪ Comparison with pre-lockdown Q1-2020 2 (2) Acquisition & Sales Fees1) ▪ Typical seasonality even strengthened by the pandemic 17 (20) Asset and Property Mgt Fees ▪ Very stable in Core/
Slide 13: Expenses Show Adoption Costs
Expenses Show Adoption Costs Key P&L Figures Q1-2021 in m€ Q1-2021 Q1-2020 Aggr. revenues 37.3 51.7 ▪ Higher OpEx ratio in H1 operational driven by Expenses from RE Equity -22.3 -20.1 cautious transaction environment and underlying fix cost base Expenses from RE Debt -2.6 -1.8 ▪ In addition, augment
Slide 14: Key Balance Sheet Figures
Key Balance Sheet Figures Debt Overview at the End of Q1-2021 in m€ 612 63 ▪ Net debt reduction plan in time and on schedule Bank & other debt 120 − Significant reduction of short-term financial (incl. € 55m in 549 instruments (bridge lending) in 2021 warehousing debt) 118 short-term − Placements ou
Slide 15: Road to Guidance
Road to Guidance Main Drivers ▪ All in place for strong recovery of transaction markets and catch-up effects in the course of the year ▪ Positive impact from advanced product range, pipeline and new sales set-up ▪ HFS already showing substantial new business ▪ AFS closing in Q2 with impact of c € 16
Slide 16: Appendix
@ CORESTATE Capital Group LM LLL YE: Villa Appendix
Slide 17: Appendix: AFS – Growth Track Record with a Focus on Small to Mid-sized Tickets
Appendix: AFS – Growth Track Record with a Focus on Small to Mid-sized Tickets Guidance FY21 € 2.4m (Revenue 2018) € 20.8m (Revenue 2019) € 25 – 30m (Revenue 2021E) € 1.1m (EBITDA 2018) € 12.9m (EBITDA 2019) € 15 – 20m (EBITDA 2021E) July 2018 May 2019 August 2020 Commencement of BaFin licence as fi
Slide 18: Appendix: Strong Synergies Unlocked Through AFS Acquisition
Appendix: Strong Synergies Unlocked Through AFS Acquisition ▪ Combination with AFS will accelerate fund raising for HFS mezzanine funds and whole loan with new target fund size of € 2 bn+ 1 HFS Fund Expansion ▪ The joined platform will significantly diversify the current debt value chain from the me
Slide 19: Appendix: AFS – Fundamental Value in Excess of €170m
Appendix: AFS – Fundamental Value in Excess of € 170 m Shares 8.5 m + 1.5 m = 10 m Financial Rationale Over the next three years ✓ Expansion of Corestate debt product € +10 m synergies ✓ Earnings accretive > +50%1 AFS’s EBITDA € 20 m 2021E ✓ € 10 m of annual run rate synergies2 € 15 m Guidance ✓ Sup
Slide 20: Appendix: Clear Focus on Investors, Reduction of Complexity and Bundling of Sales Forces
Appendix: Clear Focus on Investors, Reduction of Complexity and Bundeling of Sales Forces as Clear Path for Sustainable Growth Key Strategic Tools Initial Operative Steps (already taken) ▪ Bolt-on of full-service private debt range (AFS acquisition) ✓ Coherent Product Offer ▪ Focus on Core/Core+ ✓ a
Slide 21: Appendix: Breakdown RE AuM
Appendix: Breakdown RE AuM AuM Distribution Completion/Status Risk Classes (RE Equity AuM) (RE standing AuM) 3rd Party Under Property Mgt construction Opportunistic 21% Real 10% 9% Value- Core Estate equity add RE Equity 53% Non AuM RE Equity AuM 44% 4% Real-Estate € 27.8bn AuM Standing € 16.5bn 11%
Slide 22: Appendix: Maturity, Risk Segment, Asset Classes Profile
Appendix: Maturity, Risk Segment, Asset Classes Profile Asset Classes AuM Risk Cluster Asset Classes in Risk Segment in Risk Segment Core/Core+ (Standing Assets) Value-Add/Opportunistic Logistics et al 10% Micro Living Office Residential Office 35% Retail 46% 11% 15% RE Equity Value-Add / Retail AuM
Slide 23: Appendix: Q1 2021 Profit & Loss Statement
Appendix: Q1 2021 Profit & Loss Statement (€ m) Q1 2021 Q1 2020 Revenue from Acquisition Related Fees 2.1 1.8 Revenue from Asset Management Fees 8.8 12.6 Revenue from Property Management Fees 7.9 7.5 Total Revenue from Real Estate Equity 18.8 21.9 Total Expenses from Real Estate Equity (22.3) (20.1)
Slide 24: Appendix: Balance Sheet as of 31 December 2020
Appendix: Balance Sheet as of 31 December 2020 (€ m) 31 Mar 2021 31 Dec 2020 Non-Current Assets Goodwill 578.1 577.7 Other Financial Instruments 158.0 153.9 Intangible Assets 84.6 87.8 Investment in Associates and Joint Ventures 121.7 120.8 Other Non-Current Assets 113.4 116.3 Total Non-Current Asse
Slide 25: Appendix: Shareholder Structure and Research
Appendix: Shareholder Structure and Research Shareholder Structure (acc. to latest public filing) ▪ Number of Shares: 25.666.025 ▪ 100% Free Float (acc. to Deutsche Börse) ▪ Public filings >5% - Vestigo Immobilien Investment LP (04 May 2021) 9.9% - PPF Cyprus Management Ltd (27 Nov 2020) 5.0% Averag
Slide 26: IR Contact and Financial Calendar 2021
IR Contact and Financial Calendar 2021 Investor Contact Financial Calendar 2021 Dr. Kai G. Klinger 24 February Publication preliminary results for FY 2020 Chief Markets Officer Phone: +49 69 3535630-106 24 March Annual financial report 2020 ir@corestate-capital.com 19 May Publication results for Q1
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